The Impact of Unemployment, Minimum Wage, and Real Gross Regional Domestic Product on Poverty Reduction in Provinces of Indonesia

Asian Economic and Financial Review

article

Nur Feriyanto¹  Dityawarman El Aiyubbi¹  Achmad Nurdany² 

[1] Department of Economics, Faculty of Business and Economics, Universitas Islam Indonesia;Department of Sharia Economics, Universitas Islam Negeri Sunan Kalijaga

关键词: Unemployment;    Wage;    Real GRDP;    Poverty;    Indonesia;    Government policy.;   

DOI  :  10.18488/journal.aefr.2020.1010.1088.1099

学科分类：社会科学、人文和艺术（综合）

来源: Asian Economic and Social Society

【 摘 要 】

Poverty often impedes economic development in numerous countries, Indonesia included. Poverty, as a result of the failure of economic development, must continue to be suppressed and a solution sought, so that poverty no longer causes adverse effects for the country. The purpose of this study is to examine the impact of unemployment, minimum wage, and real gross regional domestic product (GRDP) on poverty reduction in the provinces of Indonesia. Using periodic data from the Central Bureau of Statistics (Badan Pusat Statistik-BPS) over the period 2010-2019, the fixed effect model of the panel data analysis is estimated. The result showed that unemployment and wage had a significant positive effect on poverty in provinces of Indonesia. Meanwhile, the real GRDP had a significant negative effect on poverty in Indonesia. Thus, government policy must focus on reducing unemployment, maintaining price stability to preserve wage levels and purchasing power, and increasing the real GRDP to reduce poverty in Indonesia.

【 授权许可】

CC BY